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Ex-Sainsbury's boss: Scotland could face pricier food

The outgoing Chief Executive of Sainsburys, Justin King has warned an independent Scotland could face much higher food costs. Credit: Rui Vieira/PA Wire

The outgoing Chief Executive of Sainsbury's, Justin King, has warned an independent Scotland could face much higher food costs.

Speaking in the Financial Times (£) he said:

“Once it is a separate country, we and other retailers will take a view of what the cost structure is of that industry, and of course the revenue structure too. If you were to strike that today, there is no doubt Scotland is a more costly country [in which] to run a grocery retail business.”

In the same article John Fingleton, former chair of the Irish Competition Authority and chief executive of the UK’s Office of Fair Trading said:

“Scotland is very sparsely populated and retailers carry that extra distribution cost out of the centre.

"If those costs are isolated to Scotland only, it will just push up the prices in Scotland and lower prices in England. All of the retail sectors where in-time distribution matters [will be looking at this].”


  1. Chris Choi

Do customers care who runs a supermarket?

Justin King is one of the most respected retail figures in the UK, yet I suspect that many of the 18.5 million shoppers that use the stores have no idea who he is.

Sainsbury's chief executive Justin King is to leave the supermarket in July. Credit: Press Association

Unlike brands such as Virgin and Ryanair, the boss has not been used in television advertising. Yet the ultimate manager is vital - Sainsbury's says it's aim is to be the most trusted supermarket.

Trust takes constancy of leadership and direction - chopping and changing is soon seen in the sales isles. Mr King's last job at Sainsbury's will be one of his most important - creating a smooth handover.


Sainsbury's posts busiest ever trading Christmas run-up

Sainsbury's enjoyed its busiest trading week ever in the run-up to Christmas, helping like-for-like sales in its latest quarter climb by 0.2%.

A shopper choosing Champagne over the festive period. Credit: Yui Mok/PA Wire/Press Association Images

Chief executive Justin King said the 14 weeks to January 4 had been a "very tough sales environment" but the supermarket managed to maintain its record of growth - after it was forecast to fall after 35 successive periods of expansion.

Mr King said the seven days prior to Christmas was the group's busiest ever trading week, with more than 28 million transactions.

Sainsbury's boss: Customers still have less to spend

The CEO of Sainsbury's has warned that while the British economy may be seeing positive signs of recovery, individual consumers are still finding their purchasing power reduced.

"I think what we're seeing is lots of good signs of recovery for the economy," Justin King told ITV News, "whether it be lower inflation or job creation and so on."

"But as far as individuals are concerned, they're seeing low pay rises, they're still seeing inflation - it came down yesterday but it was still 2.2% - and so on average they've got less money to spend.

"So whilst it's good news to feel that you're living and working in a country where things are getting better, in the end it's what happens to you as an individual that's going to make a difference to your shopping habits."

Sainsbury's sales up 4.4%, pre-tax profit up 7%

Supermarket Sainsbury's has posted its half-year results for the 28 weeks to 28th September 2013.

Chief executive Justin King said: "Our share of the grocery market is the highest for a decade at 16.8 per cent following 35 consecutive quarters of like-for-like sales growth.

"Whilst customers’ budgets remain tight and any recovery in the economy may take time to take effect, our consistent strategy and strong values-driven culture mean we are well placed to continue to deliver for customers, colleagues and shareholders."

Tesco rejects claims its Price Promise is 'misleading'

Tesco has rejected claims made by Sainsbury's that its Price Promise is "misleading".

Tesco's UK marketing director David Wood said: "Sainsbury's argument against Price Promise has been heard and rejected twice already.

Tesco has rejected claims made by Sainsbury's that its Price Promise is "misleading". Credit: Rui Vieira/PA Wire

"Tesco Price Promise offers customers reassurance on the price of their whole shop, in store and online, not just the big brand products.

"When family budgets are under pressure, that is the kind of help customers want and the real question for Sainsbury's is why they aren't trying to do the same for their customers."

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